Rise in Commodity Prices, Including Energy, Due to Geopolitical Risks
First written in FY2023-Q1. . Latest entry: FY2026-H1.
The whole theme swung hardest in 2025: 45 of 80 companies on the "Worse" side.
7 other companies' latest entry also says "Other".
- FY2026-H1Update to sources of uncertaintyAnnual report
「At the same time, the cost burden on companies and households remains high due to rising prices against a backdrop of persistently elevated energy and raw material prices and foreign exchange trends, and small and midsize companies in particular continue to take a cautious approach to management. Uncertainty about the outlook also remains high, including developments in U.S. trade policy, concerns over a global economic slowdown and geopolitical risks.」
While a recovery trend in the economy was indicated, energy and raw material prices, foreign exchange rates, U.S. trade policy, concerns over a global economic slowdown and geopolitical risks were cited as sources of uncertainty. - FY2025-H1Recovery trend and updated risk factorsAnnual report
「During the interim consolidated accounting period, Japan's economy strengthened its recovery trend as personal consumption recovered with improvements in employment and income conditions, aided by increased inbound demand. However, raw material and energy prices continued to rise, as did prices accompanying yen depreciation, and uncertainty remained high due to declining real wages and geopolitical risks surrounding Ukraine and the Middle East.」
While a recovery trend in the economy was indicated, raw material and energy prices, yen depreciation, real wages, and geopolitical risks surrounding Ukraine and the Middle East were cited as sources of uncertainty. - FY2024-Q3Continuation and changes in the composition of uncertaintiesAnnual report
「There are also concerns over the impact on the global economy of rising prices, worldwide monetary tightening and geopolitical risks, including the prolonged situation in Ukraine, and the outlook remains uncertain.」
The view that the outlook remains uncertain continued, with rising prices, worldwide monetary tightening and the prolonged situation in Ukraine cited as uncertainties in the external environment. - FY2024-Q2Greater Specificity in Sources of UncertaintyAnnual report
「Domestic prices have risen as unstable global conditions have persisted and the yen has depreciated, driving up raw material and energy prices. Concerns remain over the impact on consumer sentiment and corporate activity, and the outlook continues to be uncertain.」
The view that the outlook remains uncertain continued, with specific references to higher raw material and energy prices against a backdrop of unstable global conditions and yen depreciation, rising domestic prices, and concerns over their impact on consumers and corporate activity. - FY2024-Q1Changes in the nature of uncertaintiesAnnual report
「At the same time, downside risks to the economy remain, including the prolonged situation in Ukraine, further yen depreciation and rising prices, and the outlook therefore remains uncertain.」
While restrictions on activities related to COVID-19 were eased, the situation in Ukraine, yen depreciation and rising prices were cited as new downside factors for the economy. - FY2023-Q3Continuation and changes in the nature of uncertaintiesAnnual report
「Fluctuations in foreign exchange rates and global inflation trends are having a significant impact on economic activity, and the outlook remains uncertain.」
In addition to the resource prices, logistics disruptions and monetary tightening cited through the previous quarter, fluctuations in foreign exchange rates and global inflation trends were cited this time as uncertainties. - FY2023-Q2Expansion of risk factorsAnnual report
「Although the economy was affected by a renewed increase in new COVID-19 cases in July and August, rising resource prices, supply constraints caused by logistics disruptions and other factors, signs of recovery were observed. From September onward, the spread of COVID-19 subsided and economic activity picked up, but uncertainty remains, including concerns about an economic slowdown resulting from continued monetary tightening led by the United States.」
In addition to rising resource prices, supply constraints caused by logistics disruptions and concerns over an economic slowdown due to continued monetary tightening were cited as external factors, broadening the range of risk factors. - FY2023-Q1First statedAnnual report
「Meanwhile, in the information and communications industry to which our Group belongs, demand for investment in digital transformation is increasing as companies deepen their use of IT and transform their business models, and the market is expected to grow going forward. In this environment, under our mission of “Solving society’s challenges through technology,” our Group has worked to provide services that improve customers’ operational efficiency, primarily through SMS distribution services and business support services for used-car dealers.」
The same overview of operating results states that new concerns have emerged regarding increases in energy and other commodity prices attributable to geopolitical risks.